Sara Lacy of PandoDaily asks him how Instagram plans to make money. Based on his answer it sounds like: (a) their current user-base of 30 million-ish people is not yet big enough to start monetizing the service; and (b) their plan is to build a tool that advertisers can use so they don’t have to go through the “terrible experience” of using their iPhone to post an image to Instagram.

Pathetic.

Shawn and I have talked about this stuff a lot on our podcast, but the bottom line is this: charge for your app. If you follow that advice you may grow slower, but you will grow with a business model that won’t leave you scrambling later.